03August2017

GOVERNMENT INCENTIVE CERTIFICATE TERMS HAVE BEEN REVISED

GOVERNMENT INCENTIVE CERTIFICATE TERMS HAVE BEEN REVISED

Communique on the Implementation of the Decision on Government Supports in Investments has been amended on July 26, 2017. Herein below are some issues which are to be considered; concerning the amendment to the communique, which entered into force following its publication in the Official Gazette:

  1. Provided that the quantity of each machinery and equipment identified in the imported and domestic machinery and equipment lists is not exceeded, in case of purchases below or above the amount identified in the lists, direct transactions shall be possible without any amendment to the list.
Former wording: New wording:
(2) In case of an increase of up to hundred percent or decrease of up to fifty percent in the prices in terms of each machinery and equipment in the imported and domestic machinery and equipment lists, direct transactions shall be possible without any amendment to the list. "(2) Provided that the quantity of each machinery and equipment identified in the imported and domestic machinery and equipment lists is not exceeded, in case of purchases below or above the amount identified in the lists, direct transactions shall be possible without any amendment to the list."
  1. It has become mandatory that, in case of changes in the fixed investment amount or other information recorded on the certificate, the investor shall apply to the authority which issued the incentive certificate and request the revision thereof by submitting the basis for the revision or the relevant documents and information.
Former wording: New wording:

(2) The investors may request the revision of the incentive certificate by applying to the authority which issued the incentive certificate, in case of any increase or decrease more than fifty percent of the fixed investment amount of the incentive certificate, or any changes in the other information recorded in the certificate.

"(2) In case of changes in the fixed investment amount or other information recorded in the certificate, the investor applies to the authority which issued the incentive certificate and requests the revision thereof by submitting the basis for the revision or the relevant documents and information. As a result of the assessment by the relevant authority, the incentive certificates the basis of which are deemed suitable, may be revised."

Some other amendments:

  • Provided that the machinery and equipment procured from Financial Leasing Companies by obtaining incentive certificates are requested to be exported, the export permit can be issued.
  • Unlicensed Electricity Production has also been included among the sectors and scope of activities for which incentive certificate can be issued.
  • In case of investments focused on breeding poultry for meat and brood, contracted breeding will also be possible.
  • The movable and immovable property purchased with incentive certificate may be subjected to financial leasing transactions, fully or partially, in the way of selling and re-leasing by Financial Leasing Companies
  • If any amendment is required to the fixed investment amounts or other information recorded in the certificate, the investor must apply to the relevant authorities to have the incentive certificate revised as well.
  • Packing Classification has been added to the criteria recorded in the list. Furthermore, the criteria which was recorded in the list as "turkey breeding or chicken breeding for meat" has been amended as "poultry breeding"; "chicken breeding for egg" as "poultry breeding"; and "breeding chicken or turkey for brood" as "breeding poultry for brood".

Written by Selma Kıy, Mükremin Akbulut, Posted in Taxation Law

About the Author

Selma Kıy

Selma Kıy
CPA, Managing Partner.

Mükremin Akbulut

Mükremin Akbulut
CPA, Accounting Manager